For companies in many industries—whether large or small, bricks or clicks—it’s an annual ritual that must succeed: ensuring the quality and quantity of extra hires during the prime holiday sales season.
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This year, hiring demand is even more brisk, and it’s fueled by an upbeat outlook for that all-important year-end quarter, according to a trio of closely watched forecasts. Specifically:
- Deloitte LLP’s annual retail holiday sales and distribution forecast expects total 2016 holiday sales to exceed $1 trillion, representing a 3.6% to 4% increase in November through January holiday sales (excluding automobiles and gasoline) over last year’s shopping season.
- The National Retail Federation (NRF) says it expects total 2016 holiday sales (excluding automobile, gas, and restaurant sales) will increase 3.6% to $655.8 billion.
- The International Council of Shopping Centers (ICSC) also has a rosier projection, forecasting a 3.3% spending hike at physical stores, compared with a 2.2% gain in sales last year. “We continue to see positive consumer spending intentions ahead of the holiday season,” sums up Tom McGee, president and CEO of the ICSC.
Additionally, the Deloitte retail and distribution practice team forecasts a 17% to 19% increase in e-commerce sales, which should reach $96 billion to $98 billion during the 2016 season.
All told, according to the NRF, these predictions mean that retailers are expected to hire between 640,000 and 690,000 seasonal workers this winter.
At the same time, seasonal wages also are ramping up, according to the latest quarterly forecast of 2,326 hiring managers and human resource professionals by CareerBuilder®.
In its report, 37% of employers surveyed say they will increase pay for their seasonal staff, up 10 percentage points over last year. Seventy-two percent of these employers will pay $10 or more per hour, while 19% will pay $16 or more, notes Matt Ferguson, CareerBuilder’s CEO.
A Seasonal Recruiting Checklist
So, how can your managers prepare for the spending surge without falling victim to focusing on quantity vs. quality in seasonal hiring?
First off, it’s always helpful to review the sales plan, including your sales from the previous year and your current staffing coverage to statistically forecast your needs by week, day, and even by hour. Once you create that estimate, it’s time to fill in the blanks. Here are eight tips to take a fresh look at your seasonal hiring operations:
Look internally first. The first place you should look to find holiday employees is your part-time staff list, often called a flier or floater list. By drawing from a pool of workers already familiar with your organization, they’ll catch on quickly with everyday operations. The upside: They’re trained and ready to hit the ground running.
Cultivate the “returners.” Give preference to “same time next year” candidates. If you’re able to select for candidates most likely to return for another season, do so; it’ll streamline your hiring next year.
Host dedicated events. For example, Target Corporation plans to hire an additional 70,000 seasonal workers in stores and 7,500 team members (1,000 more than last year) for its distribution and fulfillment facilities for the holiday season. To help meet the demand, the retailer says it tried something new this year: Dedicated hiring events were held in all of its 1,800 stores during October where recruiters met with thousands of prospective candidates in their communities.
Welcome referrals. Help build a trusted pipeline of potential candidates by mining employee referrals. Reach out to your current staff, and encourage them to refer their families and friends.
Scoring a Temp-Hire Touchdown
Tap into target groups. Certain groups of passive candidates can be plentiful during winter holidays, such as college students or school teachers. Promote seasonal opportunities to employees’ spouses and recent retirees, as well.
Hire for attitude as much as aptitude. A lot of seasonal work is about being flexible and getting up to speed quickly rather than bringing to bear an elaborate skill set. Keep in mind the attributes you need as well, such as dependability and customer focus. Your seasonal employees may be temporary, but the impression they leave on your customers is not.
Stick to your script. Don’t shortchange HR screening and onboarding for seasonal employees. This can spell trouble on many fronts, from fielding confused workers to running afoul of labor laws. So, keep your seasonal workers on your regular HR platform.
Putting experienced hiring managers in charge of these all-important seasonal hires also makes a difference. The reason: While many candidates may only be temporary staffers, they will be representing your company at what’s often its highest sales period of the year. So hold them to the same standards – and application procedures – as permanent staffers. Your team leaders need to set the bar just as high to ensure a good fit.
Don’t forget the end game. Never assume that your seasonal workforce will remain intact through the season; turnover happens. A strategy: Some businesses consider structuring compensation to reward staffers for staying for the duration, such as a bonus paid out at the completion of the season. Another tactic: Give seasonal workers the opportunity to log more hours. Example: Last year’s holiday hires at retailer Toys “R” Us Inc., worked an average of 7 hours a week and up to 20 hours during peak times. This year, they will average 18 to 20 hours a week and up to 30 hours during the highest-traffic periods, the company says.